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FREQUENTLY ASKED QUESTIONS Below are some frequently asked questions we receive concerning nonprofit organizations.
What are the most common risks facing nonprofit organizations?
When should we begin to develop our budget and who should be involved in the budget process?
How do I figure out how much someone can give to our organization?
What’s the difference between a mission statement and a vision statement?
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What are the most common risks facing nonprofit organizations? |
| A. |
Risk can be defined as any uncertainty about a future event that threatens your organization’s ability to accomplish and fulfill its mission. Potential threats put your organization’s core assets at risk and limit your ability to provide critical services. Generally, a nonprofit’s assets fall into four categories: people, property, income, and goodwill. The most common risks coincide with the assets: (1) injuries to clients, employees, volunteers, and the public; (2) damage to property; (3) employment practices; (4) fraud, theft, or misappropriation of funds; and (5) compliance with legal requirements and best practice standards.
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| Q. |
When should we begin to develop our budget and who should be involved in the budget process? |
| A. |
You want to start thinking about the budget for the upcoming year at least 60-90 days prior to fiscal year ending. Both staff and board members must participate in each phase of the budgeting process for those items for which they will be later responsible.
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| Q. |
How do I figure out how much someone can give to our organization? |
| A. |
Determining how much someone can give is part of a process called “prospect research.” In Prospect Research, we collect information primarily in three areas: (1) a prospects financial circumstances (income, assets, etc); (2) their relationship to the organization; and (3) key personal ties between the prospect and key organizational supporters (donors, board members, members, volunteers).
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| Q. |
What’s the difference between a mission statement and a vision statement? |
| A. |
A mission statement defines what an organization is all about.
A vision statement defines what the organization wants to become.
A mission statement typically answers three key questions: (1) What do we do? (2) For whom do we do it? (3) What is the benefit?
A vision statement on the other hand, describes how the future will look if the organization achieves its mission.
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